The shown partners have always shared profits and losses in the ratio: Holt 4; Stott 2: Young 1. From 1 January the assets were to be revalued as the profit sharing ratios are to be altered soon.
The following assets are to be revalued to the figures shown: Buildings £210,000; Motor vehicles £24,000; Inventory £9,600; Office fittings £2,898.

Required:

(a) You are required to show all the ledger accounts necessary to record the revaluation.

(b) Draw up a statement of financial position as at 1 January 2016.

Transcribed Image Text:

Buildings (at cost) Holt, Stott and Young Statement of Financial Position as at 31 December 2015 Motor vehicles (at cost less depreciation) Office fittings (at cost less depreciation) Inventory Accounts receivable Bank Net assets Capitals: Holt Stott Young Total capital f 160,000 33,000 3,600 196,600 12,200 14,800 1,600 28,600 225,200 120,000 60,000 45,200 225,200